Sonu, Monu and Ashu were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2022 their Balance Sheet was as follows:
Balance Sheet of Sonu, Monu and Ashu as at 31st March, 2022
|Capitals :||Less: Provision
for bad debts 2,000
|Monu 30,000||Land and Building||80,000|
On the above date, the firm was dissolved on the following terms:
(i) Land and Building realised for ₹85,000, Furniture realised for ₹6,000 and Debtors realised full amount.
(ii) Stock was taken over by Sonu at book value. There was an unrecorded asset which was taken over by Ashu for ₹3,000.
(iii) Monu agreed to bear all realisation expenses. For his services Monu was paid ₹2,000. Actual expenses on realisation amounted to ₹2,200.
(iv) Creditors were paid at 2% less.
Prepare Realisation Account.